PROPOSED OIL AND GAS EXPLORATION AND DEVELOPMENT PROJECTS OFF THE WEST COAST OF SOUTH AFRICA

Transcription

1 Proposed oil and gas exploration and development projects off the West Coast of South Africa PROPOSED OIL AND GAS EXPLORATION AND DEVELOPMENT PROJECTS OFF THE WEST COAST OF SOUTH AFRICA NOTES OF AUTHORITY MEETING HELD ON 25 FEBRUARY 2015, 15H15, AT THE NAMAKWA DISTRICT MUNICIPALITY, SPRINGBOK PRESENT AND APOLOGIES: Please see the list of attendees and the attached attendance register in Attachment A. 1. INTRODUCTION 1.1 Jeremy Blood (JB) of CCA Environmental explained that the main purpose of this portion of the meeting was to present three proposed oil and gas projects off the West Coast of South Africa for which CCA Environmental was currently undertaking Scoping and EIA processes. 2. PRESENTATION 2.1 JC presented an overview of the three proposed oil and gas projects off the West Coast. These included: Cairn South Africa: Block 1 Proposal to expand their approved drilling programme for five additional wells in the western deep water and eastern inshore portions of Block 1. Thombo Petroleum: Block 2B Proposal to drill five possible exploration wells in the area of primary interest (A-J graben). Sunbird Energy: Block 2A Proposal to take gas from Block 2A (which already has Environmental Authorisation) to the Ankerlig Power Station, Western Cape, via a 400 km offshore production pipeline. A copy of the presentation is attached as Attachment B. 3. DISCUSSION 3.1 Christiaan Fortuin (CF) of the Namakwa District Municipality noted that authority meetings were not held with the relevant Northern Cape authorities during the Scoping Phase. However, CF expressed his appreciation to CCA for travelling to Springbok to present these projects to the district and local municipalities. JB noted that it was based on CF s initial comments submitted during the Scoping Phase, that this meeting had been scheduled. JC noted that it was important not to create unrealistic expectations with the general public as the exploration phase has limited opportunities. 3.2 CF asked for clarity as to why Sunbird is now proposing to route the gas to the Western Cape and not the Northern Cape coast. JC responded that originally the proposal was to route the gas to the coast south of Groen River mouth. However, since no market has materialised in the Northern Cape, Sunbird is now proposing to route the gas to an existing market, namely Eskom s Ankerlig Power Station near Atlantis and to the Saldanha Bay area in the Western Cape. 3.3 CF enquired about possible opportunities for the Northern Cape. JC noted that the immediate opportunities during exploration related to berthing, crew transfers, waste disposal, food and water supply and similar such opportunities. JC indicated that the larger supply vessels would, however, more likely need to berth in Cape Town or Saldanha. Berthing opportunities along the Northern Cape coastline are limited. 1 Meeting Notes: February 2015

2 Proposed oil and gas exploration and development projects off the West Coast of South Africa 3.4 Eddie Julius (EJ) of the Department of Economic Development and Tourism stated that the future of the Kleinzee hospital was uncertain. However, EJ noted that the current plan is to keep the hospital in operation and that there is interest from the private sector to take over the hospital. JC indicated that as an alternative to Kleinzee, personnel could potentially need to be transferred to the hospital in Springbok. 3.5 Ms Cloete of the Kamiesberg Municipality indicated that the most important issue with regard to all these projects was beneficiation for the Northern Cape. 4. CLOSURE 4.1 JB thanked everyone for attending and formally closed the meeting at approximately 16h40. 2 Meeting Notes: February 2015

3 ATTACHMENT A LIST OF ATTENDEES AS PER ATTENDANCE REGISTER NAME Authorities Christiaan Fortuin Lucinde Bonn Eddie Julius Sarah Cloete Soritha Cloete Wessel Weels Esau Jantjies ORGANISATION Municipal Manager, Namakwa District Municipality Namakwa District Municipality Deputy Director, Department of Economic Development and Tourism Kamiesberg Municipality Kamiesberg Municipality Nama Khoi Municipality Nama Khoi Municipality EAP Jonathan Crowther Jeremy Blood CCA Environmental CCA Environmental

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5 ATTACHMENT B CCA PRESENTATION

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7 PROPOSED OIL AND GAS EXPLORATION AND DEVELOPMENT PROJECTS OFF THE WEST COAST OF SOUTH AFRICA PROJECTS UNDER DISCUSSION 1. Cairn South Africa Block 1 Exploration well drilling 2. Thombo Petroleum Block 2B Block 1 Authority Meetings Springbok, Northern Cape 25 and 26 February 2015 Exploration well drilling 3. Sunbird Energy Block 2A Gas field development and production pipeline to coast Block 2B Block 2A CCA is currently undertaking EIAs for these projects Orange Basin Deep Water CAIRN SOUTH AFRICA BLOCK 1 CAIRN SOUTH AFRICA BLOCK 1 1. Seismic surveys were undertaken in 2009, 2013 and Cairn has Environmental Authorisation and an approved EMPr for well drilling in central portion of the block. 3. Proposal: To expand the approved drilling programme for five additional wells in the western deep water and eastern inshore portions of the block. 4. Summary of drilling programme: Drilling scheduled for 2016 / / Water depth in block areas: 20 m m. Duration: approx. 3 months per well. Onshore logistics base: Cape Town or Saldanha. Crew transfers from Kleinzee. Wellheads would be removed during abandonment. 5. EIA process: FSR has been accepted by DEA. CCA is currently preparing the Draft EIR. Next opportunity to comment: > Draft EIR (40 days). > Anticipated release date: June THOMBO PETROLEUM BLOCK 2B THOMBO PETROLEUM BLOCK 2B 1. Thombo has an approved EMPr for seismic surveys. 2. 3D seismic survey was undertaken between Jan and Feb Proposal: To drill up to five possible exploration wells in the area of primary interest (A-J graben). 4. Summary of drilling programme: Drilling scheduled for 2016 / / Water depth in area of interest: 130 m 160 m. Duration: 3 months per well. Onshore logistics base at a location yet to be chosen, such as Port Nolloth, Kleinzee, Saldanha or Cape Town. Crew transfers from Kleinzee. Wellheads would be removed during abandonment. 5. EIA process: CCA is currently preparing the FSR. Next opportunity to comment: > FSR (30 days). > Anticipated release date: April

8 SUNBIRD ENERGY BLOCK 2A SUNBIRD ENERGY BLOCK 2A 1. Sunbird currently has in place an Environmental Authorisation and hold a Production Right to develop the Ibhubesi Gas Field. 2. Exploration to date: km 2 of seismic and 11 wells drilled. 3. Approved project includes: 99 wells (phased). Subsea production system. Three production platforms (Tension Leg Platforms). Two 110 km pipelines to onshore gas processing facility. 4. Revised project description to take gas to Ankerlig Power Station, Western Cape: Production platform: FPSO or semi-submersible. 400 km offshore pipeline to a landing point between Grotto Bay and Duynefontein, and one on the Saldanha Peninsula. An onshore pipeline to Ankerlig and potential end users in Saldanha. An onshore gas receiving facility, most likely located near Ankerlig. SUNBIRD ENERGY BLOCK 2A I&AP REGISTRATION 5. EIA process: FSR has been accepted by DEA. CCA is currently preparing the Draft EIR. Next opportunity to comment: > Draft EIR (40 days). > Anticipated release date: May Do you want to be included on the EIA project databases? If so, you will receive notification of when reports are available for review and comment. Please send your contact details to: Attention: Jeremy Blood jeremy@ccaenvironmental.co.za Tel: / 9 THANK YOU 2

9 Proposed oil and gas exploration and development projects off the West Coast of South Africa PROPOSED OIL AND GAS EXPLORATION AND DEVELOPMENT PROJECTS OFF THE WEST COAST OF SOUTH AFRICA NOTES FROM THE OIL AND GAS PRESENTATION AT THE NORTHERN CAPE PROVINCIAL COASTAL COMMITTEE MEETING HELD ON 26 FEBRUARY 2015 AT THE GOEGAP NATURE RESERVE, SPRINGBOK PRESENT AND APOLOGIES: Please see the list of attendees and the attached attendance register in Attachment A. 1. WELCOME 1.1 Mr van Heerden (DvH), Head of Department of Environment and Nature Conservation (DENC) and chairperson of the Northern Cape Provincial Coastal Committee (NCPCC), welcomed CCA Environmental and invited them to provide the presentation on other various oil and gas exploration projects proposed off the West Coast of South Africa. 2. INTRODUCTION 2.1 Jeremy Blood (JB) introduced himself and Jonathan Crowther (JC) and thanked the NCPCC for allowing them an opportunity to provide feedback on the proposed oil and gas projects. 3. PRESENTATION 3.1 JC presented an overview of three proposed oil and gas projects off the West Coast. These included: Cairn South Africa: Block 1 Proposal to expand their approved drilling programme for five additional wells in the western deep water and eastern inshore portions of Block 1. Thombo Petroleum: Block 2B Proposal to drill five possible exploration wells in the area of primary interest (A-J graben). Sunbird Energy: Block 2A Proposal to take gas from Block 2A (which already has Environmental Authorisation) to the Ankerlig Power Station, Western Cape, via a 400 km offshore production pipeline. Presentation is attached as Attachment B. 4. DISCUSSION 4.1 DvH noted that the benefits for the Northern Cape cannot be answered at the meeting, as the province needed to determine how it could support these projects. 4.2 An attendee asked why Sunbird s production pipeline was no longer being routed to the coast in the Northern Cape. JC noted that originally the proposal was to route the gas to the coast south of Groen River mouth. However, this required either a market in the Northern Cape or an onshore pipeline to the Western Cape. The problem with an onshore pipeline is the number of landowners that would potentially be impacted and the time required in order to consult with these landowners. JC pointed out that an equivalent offshore pipeline could be laid in approximately 3 months. 4.3 Eddie Julius (EJ) stated that these projects should be discussed by the Northern Cape as part of their Operation Phakisa discussions. 1 Meeting Notes: February 2015

10 Proposed oil and gas exploration and development projects off the West Coast of South Africa 4.4 An attendee enquired about the possibility of constructing a power station in Kleinzee, so that electricity could be exported to other provinces rather than the gas. JC stated that Sunbird required a market for their gas and there is currently no market in the Northern Cape. There is, however, a possible user in the Western Cape, this being Eskom s Ankerlig Power Station near Atlantis. Gas is considered to be a cheaper option than burning diesel to generate gas. It has been reported that Eskom spends up to R2 billion per month on diesel. The Department of Energy will soon be calling for proposals to import gas into the Western Cape in order to supply Eskom with a cheaper fuel. JC noted that identified gas resources off the West Coast are currently small in comparison to the reserves discovered in Mozambique. Thus it is more viable for Sunbird to transfer the gas to an existing power station, rather than construct a new power station. JC noted that exploration was necessary in order to identify larger oil / gas reserves, and if found there could be more benefits for the Northern Cape. 4.5 An attendee asked about the risk of tsunamis off the West Coast of South Africa. JC noted that South Africa is geologically relatively stable and the risk of earthquakes and tsunamis are low. JC noted that approximately 300 wells had been drilled off the coast of South Africa, with no known incidents. 4.6 An attendee asked if Cairn, whose operations could be closer to the coast, has an Oil Spill Contingency Plan for the proposed well drilling in Block 1. JC stated that an oil spill modelling study was being undertaken as part of the EIA process, which would be used in the development of a project-specific Oil Spill Contingency Plan. 5. CLOSURE 5.1 DvH thanked CCA Environmental for taking the time to present these projects. 2 Meeting Notes: February 2015

11 ATTACHMENT A LIST OF ATTENDEES AS PER ATTENDANCE REGISTER NAME ORGANISATION NCPCC Mr D. van Heerden HoD DENC Ms W. Oppel DENC Mr Obopeng DENC Mr K. van Zyl DENC Mr E. Oosthuysen DENC Ms B. Cornelissen DENC Ms A. Cloete DENC Mr R. van der Poll DENC Mr E. Swartbooi DENC Mr M. Farmer DENC Ms B. Botes DENC Mr J. Peter DEA: Oceans & Coasts Ms V. Cloete DEA Mr A. Meyer De Beers Consolidated Mines Mr E. Julius Department of Economic Development and Tourism (DED&T) Mr E. Steenkamp Kamiesberg Municipality Mr C. Fortuin Namakwa District Municipality A. Brown Namakwa District Municipality Mr J. Coraizin SAMSA Mr A. Koopman SANBI Mr B van Lente SANParks Namaqua national Park Ms L. Swartbooi Alexkor Richtersveld Mining Company JV Mr M. Carstens Alexkor Richtersveld Mining Company JV Ms A. Makgato TransHex Operations Mr A. le Roux EMI Mr P. van der Linde TechAF EAP Jonathan Crowther Jeremy Blood CCA Environmental CCA Environmental

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27 ATTACHMENT B CCA PRESENTATION

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29 PROPOSED OIL AND GAS EXPLORATION AND DEVELOPMENT PROJECTS OFF THE WEST COAST OF SOUTH AFRICA PROJECTS UNDER DISCUSSION 1. Cairn South Africa Block 1 Exploration well drilling 2. Thombo Petroleum Block 2B Block 1 Authority Meetings Springbok, Northern Cape 25 and 26 February 2015 Exploration well drilling 3. Sunbird Energy Block 2A Gas field development and production pipeline to coast Block 2B Block 2A CCA is currently undertaking EIAs for these projects Orange Basin Deep Water CAIRN SOUTH AFRICA BLOCK 1 CAIRN SOUTH AFRICA BLOCK 1 1. Seismic surveys were undertaken in 2009, 2013 and Cairn has Environmental Authorisation and an approved EMPr for well drilling in central portion of the block. 3. Proposal: To expand the approved drilling programme for five additional wells in the western deep water and eastern inshore portions of the block. 4. Summary of drilling programme: Drilling scheduled for 2016 / / Water depth in block areas: 20 m m. Duration: approx. 3 months per well. Onshore logistics base: Cape Town or Saldanha. Crew transfers from Kleinzee. Wellheads would be removed during abandonment. 5. EIA process: FSR has been accepted by DEA. CCA is currently preparing the Draft EIR. Next opportunity to comment: > Draft EIR (40 days). > Anticipated release date: June THOMBO PETROLEUM BLOCK 2B THOMBO PETROLEUM BLOCK 2B 1. Thombo has an approved EMPr for seismic surveys. 2. 3D seismic survey was undertaken between Jan and Feb Proposal: To drill up to five possible exploration wells in the area of primary interest (A-J graben). 4. Summary of drilling programme: Drilling scheduled for 2016 / / Water depth in area of interest: 130 m 160 m. Duration: 3 months per well. Onshore logistics base at a location yet to be chosen, such as Port Nolloth, Kleinzee, Saldanha or Cape Town. Crew transfers from Kleinzee. Wellheads would be removed during abandonment. 5. EIA process: CCA is currently preparing the FSR. Next opportunity to comment: > FSR (30 days). > Anticipated release date: April

30 SUNBIRD ENERGY BLOCK 2A SUNBIRD ENERGY BLOCK 2A 1. Sunbird currently has in place an Environmental Authorisation and hold a Production Right to develop the Ibhubesi Gas Field. 2. Exploration to date: km 2 of seismic and 11 wells drilled. 3. Approved project includes: 99 wells (phased). Subsea production system. Three production platforms (Tension Leg Platforms). Two 110 km pipelines to onshore gas processing facility. 4. Revised project description to take gas to Ankerlig Power Station, Western Cape: Production platform: FPSO or semi-submersible. 400 km offshore pipeline to a landing point between Grotto Bay and Duynefontein, and one on the Saldanha Peninsula. An onshore pipeline to Ankerlig and potential end users in Saldanha. An onshore gas receiving facility, most likely located near Ankerlig. SUNBIRD ENERGY BLOCK 2A I&AP REGISTRATION 5. EIA process: FSR has been accepted by DEA. CCA is currently preparing the Draft EIR. Next opportunity to comment: > Draft EIR (40 days). > Anticipated release date: May Do you want to be included on the EIA project databases? If so, you will receive notification of when reports are available for review and comment. Please send your contact details to: Attention: Jeremy Blood jeremy@ccaenvironmental.co.za Tel: / 9 THANK YOU 2